Soreide Law Group's  Instablog

So your broker has convinced you that you need exposure to gold and other metals like Silver or Platinum. Usually these recommendations fall anywhere from 5-20% of a portfolio (20% would be very high for a retiree). At the moment you are probably not very pleased with the results. At Soreide Law Group, we have found that some retirees have portfolios consisting entirely of metals because of a negligent stock broker. If you find that the combination of mining companies your broker invested you in and the actual metal funds you own exceed these typical portfolio percentage levels then you may have a broker who is being negligent and overly speculative with your portfolio.

A bit about the miners: It is incorrect for your broker to say junior gold miners or other miners simply track the cost of the metals they mine. There is operational risk, increasing fuel costs, problems with foreign governments, and more. There was a time that they were higher in price even though there were lower gold prices because the cost per ounce to get the gold out of the ground has been trending up on average.

You may be entitled to damages against your brokerage firm if you have $50,000 or more in losses due to metals related asset declines. Please call Soreide Law Group at 1-800-760-6552 for a free consultation to see if you have a potential case. No fee if no recovery, representing clients Nationwide USA or international investors who invested in the USA through a broker's recommendation.

GDX Gold Miners ETF down from about 65 to 27.39

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GDXJ Junior miners are even lower quality miners that carry more risk:

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KGC

GLD As you can see from the chart below about 185 to 132 is not exactly as good as having cash in the bank, which is how GLD can be fraudulently pitched to retirees.

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SLV

AGI

GG
ANV
GOLD
EGO
AUY

NEM
GG
ABX

AEM
GFI

IAG

GORO

NSU

AU

ANV

AEM

PAAS

SLW
SSRI
HMY
HL

GBG

MFN

AZK

NXG
BVN
NSU

GSS
GORO

NUGT

FCX

COPX

BHP
RIO

The S&P 500 index has been doing great over the last 12 months. If your broker or financial advisor has mismanaged your money and significantly underperformed the index it could be a sign of broker negligence. There are a number of factors that need to be looked at such as risk tolerance, suitability, age, excessive trading, and a number of other factors to determine if broker fraud or negligence occurred. One starting point is to take a look at a list of securities at the bottom of this page and see if your broker invested your money in any of these and failed to limit your losses.

The stocks below have a market capitalization of over $1 billion (so they are widely held), have more sell than buy recommendations, have decreased in value over 35% in the last 52 weeks, and are listed on the AMEX, NASDAQ, or NYSE.

If your broker or financial advisor invested your money in the below losers or you have other significant losses over $50,000 please get in touch with Soreide Law Group PLLC to discuss how we can help you recover your losses. We service nationwide USA and do not charge a fee unless there is a recovery.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The Financial Industry Regulatory Authority (FINRA) has fined WFG Investments Inc. $200,000 over alleged lapses that led to WFG missing a stock fraud scheme involving an alleged pump-and-dump scheme run in 2006 and 2007 by John Mazzuto, former CEO of Industrial Enterprises of America Inc., and James Margulies, the COO and general counsel. Industrial Enterprises fraud reportedly involved a total of $110 million in illegal stock sales.

FINRA claimed WFG failed to supervise the sales of nearly $18 million of restricted stock of Industrial Enterprises of America. Margulies sold illegal shares to buyers through accounts he had opened at WFG.

According to FINRA's settlement, "WFG failed to conduct an independent inquiry to determine whether the shares … were freely tradable."

WFG has 115 branch offices and close to 250 brokers, agreed to a censure and a review of its supervisory procedures.

Mazzuto pleaded guilty to the fraud in January, 2011, and is serving a 4½-year prison term. Margulies was convicted in July, 2011, and is serving a 7 to 21 year sentence.

If you have suffered in the WFG Investments, Industrial Enterprises of America fraud, you may have a potential claim for recovery. Call Soreide Law Group for a free consultation with an attorney: 888-760-6552, or visit our website at www.securitieslawyer.com.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.